Strand asks out of hotel contract
Published 10:33 pm Thursday, February 19, 2015
By Blake Deshazo
The Selma Times-Journal
Strand Development Company issued a letter to the city during Thursday’s city council work session asking to be released from its contract to run the day-to-day operations of the St. James Hotel.
During a Selma Public Buildings Committee meeting Wednesday, members agreed on making recommendations to the council to begin the contract termination process, perform a forensic audit and bring in someone local to help manage the hotel during the 50th Anniversary Bridge Crossing Jubilee and the 150th anniversary of the Battle of Selma.
“We knew there were financial challenges when we entered this agreement, and we have done our best to overcome them,” the letter stated. “At this point we feel that the city of Selma will be better off financially if they will take control of the St. James and allow us out of our contract.”
According to the letter, Strand wants to end its contract with the city at the end of March, but in Wednesday’s meeting members of the Selma Public Buildings Committee stressed the need for Strand to continue managing the hotel until the anniversary events ended.
“We propose a March 31, 2015, termination date,” the letter stated. “We could depart earlier if this is best for the city, or we could extend a little longer if you need us to help facilitate the transition.”
Verhonda Sercey, a regional operations director for Strand, said the company is willing to work with the city to make the transition easier.
“We want to do whatever is best for them, so if it requires us to stay through that we’d be willing to do that certainly after some discussion,” Sercey said.
Sercey said the reason for the letter being issued to the city was because Strand feels like the hotel is at a point now where the city can take over.
“I think we’re at a point now where the hotel is starting to make money,” Sercey said. “And at this point [the city] needs to move forward with running it themselves.”
During Thursday’s work session, councilman Cecil Williamson requested the city’s Public Building Committee look into selling the hotel.
“I’m asking [the Public Buildings Committee] to find a buyer for this hotel,” Williamson said.
Before the city council meeting scheduled for Tuesday, the committee will discuss finding a buyer as well as the possibility of chef Carlos Brown managing just the restaurant and bar once the contract with Strand is terminated. The council could decide to begin the contract termination process, which seems to be a likely decision at this point, as soon as Tuesday.
The sudden decision to take action came after the city treasurer conducted an informal audit that discovered some discrepancies in reporting. Strand has since performed an audit of its own to dispute the findings. The management company provided the city with its findings as well as all of the financial reports it has made since the contract began, according to Sercey.